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Plan Well, Retire Well: Your How-to Guide

Plan Well, Retire Well: Your How-to Guide. University of Illinois Extension Consumer & Family Economics Team Contact: Dr. Angela Lyons October 21, 2002. Project Background. Project began Fall 1999 Funding Source: Lauritsen Family Foundation Work group team assigned to project

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Plan Well, Retire Well: Your How-to Guide

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  1. Plan Well, Retire Well: Your How-to Guide University of Illinois Extension Consumer & Family Economics Team Contact: Dr. Angela Lyons October 21, 2002

  2. Project Background • Project began Fall 1999 • Funding Source: Lauritsen Family Foundation • Work group team assigned to project • Research and development began Winter 1999

  3. What do people need to know to effectively save money and plan for retirement? What helps younger people save money early? How can family economics educators best provide information to help people plan for retirement? Questions We Asked

  4. Gathering Information • Interviews with financial experts • Review of literature and demographics • Storyboard exercise with Illinois educators • Focus groups with Illinois citizens

  5. Results of Research Review and Expert Interviews • Retirement preparation is often inadequate • Amounts accumulated for retirement are low • Begin saving too late • Prepared for an unrealistically short retirement • Strategies help with retirement preparation • Using tax-deferred plans regularly • Writing goals is important

  6. Storyboard Session • Explore retirement planning questions and concerns of target audience. • Suggest possible methods for reaching audience: places, delivery method, etc. • Brainstorm possible content for a retirement curriculum.

  7. Focus Group Sessions • Five focus groups conducted in Illinois • Discussion themes included: • Current retirement planning and savings behaviors • Jobs and retirement planning • Information sources for financial information

  8. Current Retirement Planning and Savings Behaviors • Building wealth • Large variability in amount saved • Employer-sponsored plans frequently used • Risk management • Barriers • Difficult to save money • How much is enough? • Unknown medical costs

  9. Jobs and Retirement Planning • Tax-deferred plans often used • Job transitions • “I cashed one [retirement plan] out and one was for so little money I think it has just slowly dwindled away.” • “I quit a company at 9 ½ years and every bit of that is gone.”

  10. Information Sources • Pros and cons of employer-provided information • Preferred sources: family, friends, Internet • Trust is important • “… I have trouble trusting. How do I know if that person is telling me the right thing? How do I know if the information is right and what’s not? … I don’t know who to trust.”

  11. Design for Plan Well, Retire Well • Importance of planning for retirement early • Keep it simple • Preferred delivery method: Internet

  12. Time Makes a Difference Start Saving Save for Retirement Choose Investments Keep Saving Goal Setting

  13. Time Makes a Difference

  14. Time Makes a Difference

  15. Save for RetirementTax-deferred Plans

  16. Save for Retirement • Delaying taxes • Tax-deferred plans • Save at your job • IRAs and more

  17. Choose Investments • Investment basics • Mutual funds • Investment risks • Control risk • Invest your money • Costs of investing • Informed investing

  18. Risks associated with Stocks Market Risk Business Risk

  19. Controlling Risk Reduces Uncertainty

  20. Dollar Cost Averaging Invest on a regular basis over extended period of time Invest the same dollar amount each time Buy more shares when prices are down, fewer shares when prices are up Reduces market risk and exchange rate risk

  21. Goal Setting

  22. Goal Setting

  23. Marketing Plan Well, Retire Well

  24. Job Fairs Payroll Stubs Alumni Newsletters Chat Sites UI Extension Programs

  25. We gratefully acknowledge the financial support of the Lauritsen Family Foundation for this project.

  26. Materials can be accessed at: http://www.web.ace.uiuc.edu/cfe

  27. Any Questions? University of Illinois at Urbana-Champaign College of Agricultural, Consumer and Environmental Sciences United States Department of Agriculture Local Extension Councils Cooperating University of Illinois Extension provides equal opportunities in programs and employment

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